May 13, 2020

Opinion | The potential impact of covid-19 on the cost of capital up ahead

This week in MintNiranjan Rajadhyaksha explains three important reasons why economic dislocation caused by COVID19 could bring down real interest rates.




"There are three possible reasons why the economic dislocation caused by a pandemic would bring down real interest rates. First, precautionary savings can increase as households change their financial behaviour...Second, corporate investments could come down in case the demand shock persists for long... Third, central banks are likely to be more interventionist in the coming years."


Read the complete article here.

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